Last week I mentioned that DAX is making a base around 6200 level. I was talking about an aggressive call that DAX may bounce around Tuesday to Wednesday this week, as such it tried to bounce in Tuesday but it was getting a resistance there.
Chart is not giving any clear signal. If we consider that DAX made a base around 6200 level then it is expected that it will bounce from here. But I think it has the chance to go up if it able to cross 6400 considerably. For now 6600 may act as a good resistance for DAX. Now if it follows the recent trend then it may not go more than around 6500 level (50% Fibonacci retracement level).
On the other hand there is a chance that DAX is making lower highs and lower lows, therefore it may drop more, may be around middle to later part of the coming week. If it breaks 6200 then 6100 is the next support level. In worse case scenario, 5800 will be an important support level for DAX.
Last day’s closing was not good and in this moment technical indicators are not showing any specific trend. So moves in the early days of the coming week are very important for DAX. It will be frustrating if DAX moves flat around 6200 to 6400 in coming days. I think emphasis should be given at 6600 level in the upside and in the downside it is 6100.
NOTE: Please see the disclaimer of this blog.a